Is Our Money Safe ?

[JKLM 10]

I have account at IB, and I don't think IB can colapse ...

but IB keep their money at Citigroup ....

what if Citigroup colapse ? would I still have my money ?

[DaKine 10]

Here is some info for you.

 

http://genxfinance.com/2008/07/30/how-sipc-works-and-how-sipc-differs-from-fdic-insurance/

[Kiwi 16]

Borrowed from another forum:

 

Quote from IBj:

 

IB has zero liquidity issues, not even close.

Our risk management systems are real time and uncompromising. If your account is deficient, we liquidate immediately. Period. It is a core part of our philosophy that we will not endanger one client by allowing others to take excessive risk.

 

We don't invest or participate in the market segments that have proved so costly to many investors and financial market participants. We own exactly zero CDO, CMO, CDS, or any other flavor of mortgage derivative; zero debt swaps, etc. We use short term FX rolls for treasury purposes and that is the only OTC transaction in our portfolio.

 

Our business is solid, and steadily growing. We are not doing anything that will compromise our reputation as a safe and conservative broker one iota. Nor will we.

 

The message you got from the compliance department is certainly related to the details of your specific account or activities therein. When a regulator makes an inquiry to certain activities, it is normal to restrict further activity in the account pending the results of the investigation. It is also common that the regulators prohibit us from discussing the nature of their investigation. I am not saying that is what happened in this case; I am merely providing a use case for situations where accounts can be frozen.

 

If you feel a FINRA involvement is appropriate, I strongly encourage you to pursue the issue with them.

 

 

There banking practices are described on their site along with the insurance and insurance levels for your account. They're more than likely to be safer than you bank unless your banks is government guaranteed and the government in question isn't about to inflate your money away.

[JKLM 10]

so, to say it clear ...

 

If Citigroup colapse, I will still have my money

true or false ?

[DaKine 10]

If Citigroup collapses you are safe if FDIC or SIPC collapses then your screwed. Maybe a Government Bailout will save you but then with all the printing is your money really worth anything? All this doom and gloom is depressing :crap:

[Kiwi 16]

Actually FDIC or SPIC failure is not enough. IB have to have the money in the wrong place as well. So the probability of FDIC/SPIC failure may actually be higher than IB failure.

[MCM 10]

I think the smart thing to do - spread your money around. Even with brokers - it makes no sense to have all eggs in one basket right now...

 

Citi sub 5 dollars today...say hello to forced mutual fund selling...

[dinarzan 10]

Can't find the article right now, but from what I understand, if your money is in a margin account, then it's at risk if the brokerage goes under.

[dinarzan 10]

Here is a relevant article for your consideration

http://seekingalpha.com/article/87901-banks-and-brokerages-and-trusts-oh-my

[AHAF 10]

JPMorgan cuts first of an expected 3,000 jobs

 

 

oh! My God.

 

Will it be the beginning of collapse? My money in JPMorgan bank.

 

 

 

We hope from God not to be true.

[kissandfly 10]

come to Europ, all our money is guaranted

[ALexLutiera 10]

It is goos to know first, if our money would be safe in the bank. Some banks may get corrupt, and even bankrupt. I know it is really hard working for money, so we should also be wise enough on where to place our money. There could be many reliable banks out there. You should choose which is mostly used and entrusted by people.